So i just dropped out of college recently and i needed to do something to earn money. So I started a carpet cleaning business without insurance or a business license, because it was just a side business. I rented the equipment so it was affordable for me to start right away. I wasn't expecting to have many clients early on.

I have only been in business for a month and i made a total of seven thousand dollars. Now i worked 7 days a week, and i advertise like crazy. I had lower prices than my competition . But will i still have to pay taxes on my business. I was only in business for one month, and i don't have license, insurance, or sales tax certificate.

If you're talking about income taxes, then you have to fill out a schedule C for your form 1040. However all your expenses associated with the business are deductible. You can depreciate all your assets you bought for your business. You can deduct the mileage for your car or truck. You might also be able to take a section of your house or apartment rent on your schedule C. However be sure to read the rules about deducting your home office. The rules are in Publication 17.

You will probably show either a very small profit or a loss. Most businesses show a loss for the first couple of years. The profit or loss goes on line 12 of form 1040, line 12. You can get more information about this from publication 17 which is available on line. Just google "publication 17"

If you made any profit, then you will also have to fill out form SE, which is self employment tax.

If you're asking about sales tax rather than income tax, then that will depend on what state you live in. The sales tax laws differ from state to state. I'm not familiar with the Arizona sales tax law.

US Federal income tax applies to "all income from whatever source derived".Al Capone was convicted of TAX evasion for not paying taxes on his ILLEGAL income when they couldn't convict him for the illegal activities that generated the income.

You SHOULD talk to a CPA, TODAY if possible, to learn how to keep proper business records.Legitimate business expenses are deducted from gross revenues to determine taxable income.I am willing to BET your REAL income is different than what you THINK you have made.

You have to pay taxes on your business. By default you are considered a sole proprietor under the law. You can operate your business without ever incorporating. As long as you avoid hiring employees you can keep things simple. You should get a business license though.

So i just dropped out of college recently and i needed to do something to earn money. So I started a carpet cleaning business without insurance or a business license, because it was just a side business. I rented the equipment so it was affordable for me to start right away. I wasn't expecting to have many clients early on.

I have only been in business for a month and i made a total of seven thousand dollars. Now i worked 7 days a week, and i advertise like crazy. I had lower prices than my competition . But will i still have to pay taxes on my business. I was only in business for one month, and i don't have license, insurance, or sales tax certificate.